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Market Update

Nifty : 25,048.65

Sensex : 81,537.70

 * Equity benchmark indices witnessed a sharp sell-off, with the Sensex plunging nearly 800 points and the Nifty closing decisively below the crucial 25,100 level amid broad-based selling across the market. Persistent FII outflows and a sharp depreciation in the rupee to a fresh record low of around 92 against the US dollar weighed heavily on investor sentiment.

 * Ongoing geopolitical tensions and uncertainty surrounding the US–India trade agreement further dampened market confidence. Traders also remained cautious ahead of the upcoming Union Budget and amid mixed quarterly earnings.

 * The Sensex declined 770 points, or 0.9%, to close at 81,537, while the Nifty slipped 240 points, or 1%, to end at 25,048. On a weekly basis, the Nifty lost over 600 points, or 2.5%, marking one of its steepest weekly declines this year. The Nifty 500 advance-decline ratio stood at a weak 1:7, highlighting aggressive selling pressure in mid-cap and small-cap stocks.

 * Sectorally, the Nifty Realty index emerged as the biggest laggard, falling 3% during the session and over 11% for the week, following disappointing quarterly results from Oberoi Realty and DLF. The Nifty PSU Bank, auto, IT, mid-cap and small-cap indices declined between 1–3%.

 *  Select metal stocks saw fresh buying interest, with Hindustan Zinc surging 4% on the back of record-high silver prices. Stocks such as Home First Finance and Bandhan Bank advanced 6% and 5%, respectively, after reporting strong quarterly results.

TechnicalOutlook:

 * Nifty index opened positive but failed to cross 25350 levels and fell right from the initial tick and weakness continued till the closing hour. It nosedived towards 25000 zones and closed with losses of around 230 points. It formed a bearish belt hold sort of a candle on the daily and weekly frame indicating assertiveness of the bears at any minor attempts of recovery. It has started to make lower top – lower bottom and wiped off around 1450 points in the last two weeks. Now till it holds below 25200 zones weakness could be seen towards 24900 then 24800 zones while hurdles have shifted lower to 25200 then 25350 zones.

 * S&P BSE Sensex index opened on a flattish note and traded in a range during the first half of the session. However selling pressure intensified in the second half as bears took firm control. Every minor bounce was met with fresh selling which dragged the index to close near its intraday low and indicates a negative sentiment. On the daily chart it formed a bearish candle while the weekly chart displayed a bearish formation which highlights a continued dominance of bears. Now till it holds below 81700 zones weakness could be seen towards 81300 then 81000 zones while hurdles have shifted lower to 81800 then 82200 zones.

DerivativeOutlook:

 * Nifty future closed negative with losses of 1.06% at 25080 levels. Positive setup seen in Hindustan Zinc, National Aluminium, Ashok Leyland, DR Reddy, APL Apollo, Hindalco, TECHM and Hindustan Unilever while weakness in Paytm, Eternal, Lodha, Indigo, Cipla, Jiofin, Coforge, IIFL, NMDC, JSW Energy, Sonacoms and SBI Card.

 * On option front, Maximum Call OI is at 25300 then 25500 strike while Maximum Put OI is at 25000 then 24800 strike. Call writing is seen at 25300 then 25200 strike while Put writing is seen at 25100 then 24700 strike. Option data suggests a broader trading range in between 24800 to 25600 zones while an immediate range between 24900 to 25300 levels.

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